Axed schools 'will lie derelict'

Published on Friday 3 October 2008 09:46

CAMPAIGNERS fighting to save city schools from the axe today warned the credit crunch would lead to the mothballed buildings lying "derelict".

Parents believe that developers will shy away from investing in the land at Lismore, Bonnington and Westburn primaries, which the council is planning to sell off if it closes the schools.

Property experts have also warned that the council may be forced to sell land at a much reduced rate.

The council, which is currently consulting on proposals to close the three schools, believes selling the land could earn it 5.8 million. It is estimated that selling the land Lismore is on in Bingham could earn the council 3m, while Bonnington, in Leith, and Westburn, in Wester Hailes, could be sold for 1.4m each.

Gail Ross, secretary of the Lismore Parents Action Group, said: "I don't think they will be able to shift the land because of the credit crunch. They are sitting there waiting for the money to come in, and it's not going to.

"If they do manage to sell it off, it will just lie derelict, because the developers won't be able to afford to do anything with it."

Lisa Manders, chairwoman of Bonnington Primary's parent council, believes that in a more stable economic climate, the listed building on Bonnington Road would be snapped up by developers.

She said: "If it had been this time last year, there would have been lots of people interested in it, but because of the credit crunch it's not going to be like that.

"If they do sell it, developers will get a bargain and the council could make less than it costs to keep the school open for another year."

Cameron Stott, director of selling agent Jones Lang LaSalle in Edinburgh, said there weren't as many opportunities to sell to developers as there previously would have been.

But he said that this downturn might give new developers thinking to the future the opportunity to "step up" and acquire the land.

He added: "While bringing something on to the market now is not ideal, as long as the council and its selling agents ensure that there's a mechanism for top-ups and profit shares, then the council would be able to improve its profits when the situation picks up.

"It might be a reduced price just now, but there could be potentially more."

Miller Mathieson, managing director of the Edinburgh office of commercial property firm CBRE, added: "There's no question that the ability of house builders to acquire development opportunities is severely constrained by the credit crunch, and that has had an impact on pricing."